Emirates, the Dubai-based international airline, has signed a sale and leaseback with the Emirates Bank Group (EBG) of a B777-200 aircraft for US$78 million. The aircraft was originally delivered to Emirates as new in 1996, and since then the original lease has been paid out in full. The aircraft was recently refurbished as new and the IFE system replaced with the latest MAS 3000i IFE system.
The refinancing, structured as a USD operating lease over a four-year term, was arranged and funded by EBG. The financing is the third aircraft entirely structured by the Emirates Bank Group and this very successful financing is a strong signal of support in the Emirates Group. The weighted average cost of funds was 0.9 per cent over six-month LIBOR (London Interbank Offered Rate).
Riyaz Peermohamed, Emirates’ Senior Vice President - Corporate Treasury, said: “We are grateful for Emirates Bank Group’s support on this important transaction and this is the first time we have completed a sale and leaseback of an aircraft already existing in our fleet.
“The financing helps us raise liquidity for the Emirates Group in line with its growth objectives as well as manage overall aircraft portfolio residual value risk.”
Mr Abdul Wahed Al Fahim, General Manager Corporate Banking, Emirates Bank, said "Emirates Bank is pleased to be associated with Emirates for this unique structured finance transaction. This deal further enhances the excellent relationship we enjoy with Emirates since inception."
Emirates already has 71 Boeing and Airbus jets, including 29 Airbus A330-200s, 12 Boeing 777-300s, nine Boeing 777-200s, six Airbus 340-500s, eight A340-300s, one Airbus A310 and six Boeing 747 freighters.
Emirates is one of the fastest growing and most profitable airlines in the world, operating to 77 destinations in 54 countries from its Dubai base. Emirates’ new services introduced in the first nine months of 2004 include: Lagos, Accra, Budapest (cargo-only), Glasgow, Vienna, Christchurch and passenger services to Shanghai and New York.
Its order book includes 45 Airbus A380-800s, 30 Boeing 777-300ERs plus nine options, four ultra-long-range Airbus A340-500s and 20 Airbus A340-600 Higher Gross Weight aircraft, amounting to a total of USD $28 billion. By 2012 Emirates expects to have twice as many jets in its fleet as it does today. (menareport.com)
© 2004 Mena Report (www.menareport.com)
